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Baltrans seeks cut in rental

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Baltrans Holdings is seeking a 30 per cent rent cut at the Airport Freight Forwarding Centre (AFFC) after the Airport Authority cut retailers' rents by a similar amount.

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'We pay $500,000 a month rental at the Sun Hung Kai AFFC, and in the short term, we cannot pass this cost on to shippers,' Baltrans chief executive Anthony Lau Siu-wing said.

A Sun Hung Kai Properties-led consortium operates the centre under a lease from the authority.

Mr Lau said it would be unfair to forwarders if the authority refused to grant similar reductions.

Baltrans leased 30,000 square feet of warehouse space and had been badly affected in July and August by the cargo chaos following Chek Lap Kok's opening.

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Business had picked up slightly since, he said after the company's annual general meeting yesterday.

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